Clauses that restrict the franchisee's freedom after the end of the contract must necessarily be limited to a period of one year.
Paris Court of Appeal, Division 5, Chamber 4, July 1, 2020, No. 17/21498
Clauses that restrict the franchisee's freedom after the termination of the contract must be limited to a period of one year. Otherwise, they risk being deemed unwritten, pursuant to Article L.341-2 of the French Commercial Code.
This is the lesson of a ruling handed down by the Paris Court of Appeal on July 1, 2020, concerning a clause stipulated without time limit, obliging the franchisee of a car wash network with a white and blue logo "to no longer use the blue and white colours" appearing in the franchisor's logo at the end of the contractual relationship.
